CHP 12

Question 1

What is Environmental scanning?

Answer 1

firms scans world for changes in environmental forces that might affect it

Question 2

How do firms display environmental scanning?

Answer 2

staying on top of current event and how they affect individual/company/economy

Question 3

What is used for spreading news or supporting particular causes?

Answer 3

social media

Question 4

What do firms us to asses market screening?

Answer 4

Firms use environmental forces to identify desirable markets

Question 5

What is Market screening?

Answer 5

How to select a location for investment

Question 6

What are the 2 different types of firms assisted by market screening?

Answer 6

1. Domestic firms seeking overseas sales opportunities

2. MNCs not wanting to miss new foreign market potential

Question 7

T/F is Market screening a subtype of Environmental scanning?

Answer 7

True

Question 8

What are the 5 processes for selection of foreign Markets?

Answer 8

1. Basic needs potential
2. Financial and economic forces
3. Political and legal forces
4. Sociocultural forces
5. Competitive forces

Question 9

What is looked for in the initial screening?

Answer 9

Asses if there is a basic needs potential for its goods/services

Question 10

What is easier to market for the basic needs potential?

Answer 10

producers of specialized industrial materials/equipment

ex air conditioners

Question 11

What is more difficult to market for basic needs potential?

Answer 11

Specialized consumer products

ex: chocolate, video games

Question 12

What is Financial and economical forces?

Answer 12

Reduces potential markets through analysis of financial and economical forces

Question 13

What are some factors to look into for financial and economical forces?

Answer 13

inflation trends, currency exchange rate, interest rates, credit availability, paying habits of customers, rates of return on similar invesments

Question 14

What are some Market indicators?

Answer 14

economic data used to measure relative market strengths of countries/ geographical areas

Question 15

What are the 3 market indicator tools used?

Answer 15

1. Market Size
2. Market growth rate
3. E-commerce readiness

Question 16

What are market factors?

Answer 16

data that correlate highly with demand for product

Question 17

What is a tool used for market factors? and describe it

Answer 17

Estimation by analogy: process of using a market factor that is successful in one market to estimate demand in similar market

Question 18

What is trend analysis?

Answer 18

successive observation of variable at regular intervals analyzed to establish regular patterns that are used for establishing future values

Question 19

What are the 3 key factors to Political and legal forces?

Answer 19

1. Entry barriers
2. Profit Remittance Barriers
3. Policy Stability

Question 20

What is Entry Barriers?

Answer 20

import restrictions, local participation requirements, local content restrictions, government competition

Question 21

What if Profit Remittance Barriers?

Answer 21

restrictions on the repatriation of earnings, limits to FDI, inability to provide foreign exchange

Question 22

What is Policy Stability?

Answer 22

political climate, gov stability, public unrest

Question 23

socialcultural forces are fairly ___ and a ____ process

Answer 23

subjective; difficult

Question 24

T/f in Socialcultural forces, data is difficult to assemble, particularly from a distance?

Answer 24

True

Question 25

What are some sources to Socialcultural forces?

Answer 25

Department of Commerce data and reports
business international
Financial times
economist

Question 26

Competitive forces examines markets on how many bases of elements?

Answer 26

10

Question 27

What are the first 5 competitive forces elements?

Answer 27

1. # , size, financial strength of competitors
2. Market shares
3. Marketing strategies
4. Effectiveness of promotional programs
5. Quality levels of their product lines

Question 28

What are the last 5 competitive forces elements?

Answer 28

6. source of their products-imported/locally produced
7. Pricing policies
8. Levels of their after-sales services
9. Distribution channels
10. coverage of the market

Question 29

Conventional vs. Expanded veiw are 2 screening methods that should be ____

Answer 29

reconsidered

Question 30

What is the conentional view?

Answer 30

the world is organized along national lines

Question 31

Why should expanded view be adopted?

Answer 31

multiple subcultures exist w/i nations

subcultures are similar across nations

Question 32

The nation may no longer be the relevant unit of___?

Answer 32

analysis